Tesla’s Robotaxi Plans Raise Federal Safety Concerns Over FSD System

Is Tesla’s robotaxi service safe? That’s the question both consumers and regulators are asking as the National Highway Traffic Safety Administration (NHTSA) turns its spotlight on the automaker’s Full Self-Driving (FSD) software. Tesla’s ambitious plans to launch a commercial ride-hailing robotaxi fleet in Austin, Texas, have prompted federal scrutiny—especially around how its autonomous technology performs in low-visibility conditions like fog, rain, or glare. With Tesla aiming to transform urban mobility and disrupt the $100 billion ride-hailing market, concerns around autonomous vehicle safety, regulatory compliance, and public trust are taking center stage.

Why Tesla’s Robotaxi Initiative Has the NHTSA's Attention

The Office of Defects Investigation, a division of the NHTSA, has formally requested Tesla to provide extensive details on its Full Self-Driving (Supervised) technology. This probe was triggered after multiple incidents involving the system during poor visibility scenarios, raising alarms about the readiness of the software for real-world, autonomous deployment. Tesla’s FSD, which still requires driver supervision and hands on the wheel, currently operates semi-autonomously—handling tasks like steering and braking—but isn't yet approved as a fully autonomous driving system.

What Sparked the Investigation Into Tesla’s Full Self-Driving (FSD)?

Tesla’s April 23 post on X (formerly Twitter) seemed to kick off the regulatory red flags. The company announced that its FSD Supervised ride-hailing service had already begun early testing with employees in Austin and the San Francisco Bay Area. According to Tesla, over 1,500 trips and 15,000 miles had already been logged. This post not only highlighted Tesla’s rapid development timeline but also revealed a degree of operational confidence that regulators are now questioning. The federal investigation aims to clarify whether the upcoming robotaxi fleet will be based on the same FSD software or an unreleased, unsupervised version.

Key Questions Tesla Must Answer About Its Robotaxi Safety

In its formal letter, NHTSA presented Tesla with a detailed set of questions. These range from fleet size and vehicle models to operational procedures during adverse weather conditions. Regulators are especially concerned about how Tesla plans to evaluate its automated driving system’s reliability in reduced-visibility environments—critical for real-world deployment. This focus on environmental factors—such as fog, sun glare, and rain—is closely tied to broader safety discussions in the autonomous vehicle industry.

Is Tesla’s Robotaxi Really Driverless? The “Unsupervised” Software Question

While Tesla’s FSD Supervised system still requires human oversight, CEO Elon Musk has hinted that the company’s robotaxi service will soon rely on a fully “unsupervised” version of its autonomous driving technology. That raises major safety and regulatory questions. Will this version be fundamentally different from the supervised one currently being tested? Is it being evaluated thoroughly before hitting public roads? The NHTSA is pushing Tesla for transparency, and the outcome could set a precedent for the future of driverless vehicles across the U.S.

The Broader Implications for Autonomous Ride-Hailing Services

Tesla’s robotaxi rollout is part of a larger race in autonomous mobility—competing with Waymo, Cruise, and other players aiming to dominate the robotaxi market. With ride-hailing being a high-margin opportunity and a prime target for AI-driven disruption, success depends not only on advanced software but also on regulatory approval and public acceptance. Any flaw in Tesla’s safety strategy could delay its timeline, impact stock prices, and influence the broader perception of self-driving cars.

How This Investigation Could Affect Tesla Investors and Tech Regulation

Federal oversight of Tesla’s robotaxi plans signals a shift in how regulators approach emerging AI and autonomous technologies. The outcomes could directly affect Tesla’s valuation, its future roadmap, and even prompt tighter rules for competitors. For investors, this is a critical juncture. Safety probes and potential delays could influence both short-term volatility and long-term earnings projections—especially if Tesla plans to monetize its autonomous network via subscription-based ride-hailing services.

A Crucial Test for Tesla’s Self-Driving Future

Tesla’s drive to launch robotaxis isn’t just a tech experiment—it’s a multi-billion-dollar bet on the future of transportation. But with safety regulators stepping in, the company must prove that its Full Self-Driving systems are robust enough to handle complex real-world scenarios. Whether Tesla can meet these demands will determine not only the fate of its robotaxi service, but also how quickly autonomous vehicles become mainstream. As public safety, government policy, and high-stakes innovation converge, all eyes remain fixed on Tesla's next move.